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| Economy |
| New bull market in stocks could last three years and may produce another 30% in gains, veteran strategist says |
| 2020-09-01 |
| [Market Watch] Federal Reserve Chairman Jerome Powell on Aug. 27 gave stock investors the green light to throw more money at the market. In a virtual speech to the annual Jackson Hole monetary policy conclave, Powell declared that the central bank would allow inflation to rise above 2% if that followed a period of persistently low inflation, essentially abandoning its longtime target. Powell only codified what the Fed has been doing since COVID-19 sent the U.S. economy into the deepest recession since the Great Depression: Cutting interest rates to zero and engaging in trillions of dollars’ worth of securities purchases to shore up shaky markets, and stimulate the economy and job creation. That speech and continued hopes for a vaccine and an economic recovery pushed the S&P 500 Index SPX, -0.21% and Dow Jones Industrial Average DJIA, -0.78% higher that day and again Friday. One leading market guru thinks we’re just getting started. Sam Stovall, chief investment strategist for CFRA in New York, says that, based on history, the new bull market that emerged from the February-March COVID bear market could last three years. By one model, he says, that could take the S&P 500 30% higher, which would put it around 4,500 points in 2023. (Stovall has not published an official projection for 2023.) Stovall, who’s been a market analyst and strategist for over three decades, bases his projection, in part, on sunny forecasts from his firm’s economists, who see a V-shaped economic recovery on the horizon. (He says they called the 32.9% second-quarter GDP decline almost to the percentage point.) Speaking to me last week before Powell’s remarks, Stovall explained how rock-bottom interest rates shape his forecast. |
| Posted by:Besoeker |
| #12 #10 - LOL. I had forgotten that little nugget of stupidity. |
| Posted by: Matt 2020-09-01 17:27 |
| #11 Let's hope they're not trying to set up an October |
| Posted by: charger 2020-09-01 16:50 |
| #10 Obama: "1200/1 Profit to Earnings is evil" |
| Posted by: Frank G 2020-09-01 15:45 |
| #9 ^ Especially if interest rates are close to zero. The current choices are to buy stocks or hide it under the mattress. So people are buying stocks at just about any price. E.g., Tesla's a great story-stock, but a 1200/1 PE ratio is crazy. |
| Posted by: Matt 2020-09-01 15:36 |
| #8 Investors should consider rising odds of Trump win: JPMorgan |
| Posted by: Skidmark 2020-09-01 15:35 |
| #7 All those newly 'created' trillions of dollars have to find a home, so the market will rise. It will not be accompanied by increased productivity though, so it will all be an inflationary illusion. |
| Posted by: Glenmore 2020-09-01 14:35 |
| #6 The WAPO in December 2018, after the Dow had dropped 800 points: It's Trump's Stock Market Now. Who am I to argue with the WAPO? |
| Posted by: Matt 2020-09-01 11:39 |
| #5 The winsome call of a market top? |
| Posted by: 2020-09-01 10:38 |
| #4 I’m upping my contributions to winred.com: I figure it’s not only investing in a stop-loss strategy, but I’ll easily recoup in the market surge afterwards. At least I’m leaving abundant proof of where I stand. |
| Posted by: Ptah 2020-09-01 10:26 |
| #3 People whose retirement depends on a rising market don't care who's responsible, who gets credit. But let it start going down and you will hear plenty... |
| Posted by: M. Murcek 2020-09-01 08:34 |
| #2 Dems will say there is a lag and it all began under the tutelage of Barry Soetoro. But when things go south, it's Trump's fault. Before COVID, Dems basically rooted for poor economic numbers to defeat Trump. Enter COVID and attempts at going green (not just in the US). |
| Posted by: Clem 2020-09-01 07:05 |
| #1 Will President Trump be blamed for this as well ? |
| Posted by: Besoeker 2020-09-01 06:41 |